Exploration drilling update

PREMIER OIL PLC

("Premier")

Exploration drilling update

4 June 2014

Indonesia

Singa Laut - wet gas discovered

Premier is pleased to announce that the Singa Laut-1 well in Tuna PSC (Premier operator, 65 per cent) offshore Indonesia has penetrated 177 feet of net gas-bearing reservoir quality sands within the targeted Oligocene sequence. Gas gradients have been measured and gas samples recovered. The gas appears to be of similar quality to the liquids rich gas found in the adjacent Kuda Laut well.

The Singa Laut-1 well will now be plugged and abandoned as a successful exploration well. Appraisal drilling to further assess the combined Singa Laut and Kuda Laut oil and gas resources is targeted for 2015.

Ratu Gajah

The Ratu Gajah-1 well penetrated the targeted deep Lama section with gas shows. Whilst sandstone quality is low, a DST is being performed to demonstrate movable hydrocarbons. Integration of this well result into our basin modelling has allowed us to identify significant thicker sands in this play at the basin margin. After the DST results, the immediate follow up for the play will be the appraisal of the Anoa Deep discovery in early 2015 and the high grading of other prospects in the Lama play which have a gross prospective resource in excess of 1.5 TCF.

Falkland Islands

Rig secured for 2015 exploration campaign

Premier has signed a rig contract and rig sharing agreement for its Falkland Islands exploration and appraisal campaign which is expected to commence in Q2 2015. The campaign will comprise of at least four wells which will test prospects to the south of Sea Lion including the potential for another Sea Lion-scale discovery at Isobel/Elaine.

Andrew Lodge, Exploration Director, commented:

"We are pleased that the Singa Laut discovery has increased our gross resource estimate on the Tuna Block to a potential 100 mmboe, that Ratu Gajah has provided further valuable information about the Lama play and that we have secured our high impact exploration programme for 2015 in the Falklands."